Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ Stock Market, LLC Relating to Access Service Fees, 67791-67794 [2010-27688]

Download as PDF Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Notices interest where such conflicts might act to the detriment of investors, and to review and approve any transactions where such conflicts have been identified. This should include any material amendment to the management agreement, including any change with respect to the compensation of the manager. Nasdaq believes that these additional requirements will help protect investors by ensuring that CSCs remain committed to their described investment objectives and strategy; that adequate information will be available to investors on an ongoing basis regarding the value of their underlying investment; and that additional safeguards will exist in the form of independence and oversight of certain activities. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,7 in general and with Sections 6(b)(5) of the Act,8 in particular. Section 6(b)(5) requires, among other things, that a registered national securities exchange’s rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. The proposed rule change is consistent with these requirements in that it imposes additional requirements on CSCs, which are designed to protect investors and the public interest and prevent fraudulent and manipulative acts and practices on the part of the CSC and their promoters. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. jlentini on DSKJ8SOYB1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 7 15 U.S.C. 78f. 8 15 U.S.C. 78f(b)(5). VerDate Mar<15>2010 19:21 Nov 02, 2010 Jkt 223001 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission shall: (a) By order approve or disapprove such proposed rule change, or (b) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: 67791 information that you wish to make available publicly. All submissions should refer to File Number SR– NASDAQ–2010–134 and should be submitted on or before November 24, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–27722 Filed 11–2–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2010–134 on the subject line. [Release No. 34–63197; File No. SR– NASDAQ–2010–136] Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2010–134. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) ,1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 20, 2010, The NASDAQ Stock Market LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ Stock Market, LLC Relating to Access Service Fees October 27, 2010. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify Exchange Rule 7015, related to fees governing pricing for NASDAQ members using The NASDAQ Stock Market LLC and the NASDAQ Options Market (‘‘NOM’’), NASDAQ’s facility for executing and routing standardized equity and index options, to apply only to The NASDAQ Stock Market LLC. The Exchange also proposes to create a new Rule 7053 which would include Access Services applicable only to NOM. The text of the proposed rule change is set forth below. Proposed new text is in italics and deleted text is in [brackets]. * * * * * 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\03NON1.SGM 03NON1 67792 Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Notices 7015. Access Services The following charges are assessed by Nasdaq for connectivity to systems operated by NASDAQ, including the Nasdaq Market Center, the FINRA/ NASDAQ Trade Reporting Facility, and FINRA’s OTCBB Service. The following fees are not applicable to the NASDAQ Options Market LLC. For related options fees for Access Services refer to Rule 7053. (a) Nasdaq Information Exchange (QIX) $1,200 per month. (c) Computer to Computer Interface (CTCI) $1,200 per month. Port pair (plus optional proprietary quote information port). ECN direct connection port pair. Unsolicited message port. Stations Fee component Fee 1st Station .................. Each Additional Station. $200/Station/month. $600/Station/month. $1,000 per month. (b) Financial Information Exchange (FIX) [Options] Ports Price FIX Trading Port .............. FIX Port for Services Other than Trading. $500/port/month. $500/port/month. The bandwidth-based fees in the table below apply to CTCI subscribers that have not transitioned off of Nasdaqsupported circuits. Bandwidth Fee component Fee Single 56kb line with single hub and router (for remote disaster recovery sites only) ........................... Option 1: Dual 56kb lines (one for redundancy) and single hub and router .................................................... Option 2: Dual 56kb lines (one for redundancy), dual hubs (one for redundancy), and dual router (one for redundancy). Option 3: Dual T1 lines (one for redundancy), dual hubs (one for redundancy), and dual routers (one for redundancy). Includes base bandwidth of 128kb. Bandwidth Enhancement Fee (for T1 subscribers only): Per 64kb increase above 128kb T1 base ......................................................................................... Option 1, 2, or 3 with Message Queue software enhancement ....................................................... Installation Fee .................................................................................................................................. Relocation Fee (for the movement of TCF/IP-capable lines within a single location) ..................... $900/month. $1,000/month. $1,200/month. $2,500/month. $200/month. Fee for Option 1, 2, or 3 (including any Bandwidth Enhancement Fee) plus 20%. $2,000 per site for dual hubs and routers. $1,000 per site for single hub and router. $1,700 per relocation. (d) New Nasdaq Workstation Nasdaq Workstation Trader ..................................................................................................................... Nasdaq Workstation Post Trade .............................................................................................................. $475 per user per month (including data entitlement package). See Rule 7015(e). (e) Specialized Services Related to FINRA/NASDAQ Trade Reporting Facility CTCI fee ................................................................................................................................................... WebLink ACT or Nasdaq Workstation Post Trade .................................................................................. jlentini on DSKJ8SOYB1PROD with NOTICES ACT Workstation ...................................................................................................................................... (f) TradeInfo Members not subscribing to the Nasdaq Workstation using TradeInfo will be charged a fee of $95 per user per month. (g) Other Port Fees The following port fees shall apply in connection with the use of other trading telecommunication protocols: • $500 per month for each port pair, other than Multicast ITCH® data feed VerDate Mar<15>2010 19:21 Nov 02, 2010 Jkt 223001 pairs, for which the fee is $,000 per month. • An additional $200 per month for each port used for entering orders or quotes over the Internet. • An additional $600 per month for each port used for market data delivery over the Internet. (h) VTE Terminal Fees • Each ID is subject to a minimum commission fee of $100 per month PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 $575/month. $375.00/month (full functionality) or $200.00/month (up to an average of twenty transactions per day each month) (For the purposes of this service only, a transaction is defined as an original trade entry, either on trade date or as-of transactions per month.) $525/logon/month. unless it executes a minimum of 100,000 shares. • Each ID receiving market data is subject to pass-through fees for use of these services. Pricing for these services is determined by the exchanges and/or market center. • Each ID that is given web access is subject to a $100 monthly fee. * * * * * E:\FR\FM\03NON1.SGM 03NON1 Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Notices 7053. NASDAQ Options Market— Access Services The following charges are assessed by Nasdaq for connectivity to the NASDAQ Options Market. (a) Financial Information Exchange (FIX) Ports Price FIX Trading Port .............. FIX Port for Services Other than Trading. $500/port/month. $500/port/month. (b) TradeInfo • Members not subscribing to the Nasdaq Workstation using TradeInfo will be charged a fee of $95 per user per month. (c) Other Port Fees The following port fees shall apply in connection with the use of other trading telecommunication protocols: • $500 per month for each port pair. * * * * * The text of the proposed rule change is available on the Exchange’s Web site at https:// www.nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change jlentini on DSKJ8SOYB1PROD with NOTICES 1. Purpose NASDAQ is proposing to separate its equity and options fees which are assessed for connectivity to systems operated by NASDAQ. Currently Rule 7015, titled Access Services, contains fees assessed by Nasdaq for connectivity to systems operated by NASDAQ, including the Nasdaq Market Center, the FINRA/ NASDAQ Trade Reporting Facility, and FINRA’s OTCBB Service. Rule 7015 applies to both The NASDAQ Stock Market LLC members, conducting an VerDate Mar<15>2010 19:21 Nov 02, 2010 Jkt 223001 equities business, and NOM members, conducting an options business. Access Services fees relate to ports used to: Enter orders into the NASDAQ trading systems; receive market data; enter quotes; and enter trade reports into the FINRA/NASDAQ Trade Reporting Facility. The Exchange is proposing to add the following language to Rule 7015 so that it applies solely to The NASDAQ Stock Market LLC members: ‘‘The following fees are not applicable to the NASDAQ Options Market LLC. For related options fees for Access Services refer to Rule 7053.’’ The Exchange is proposing to list those Access Service Fees which would apply to NOM members in a separate Rule. The Exchange proposes to create a new Rule 7053, titled ‘‘NASDAQ Options Market—Access Services’’ which would apply to NOM members conducting an options business. Specifically, this proposed new Rule would include pricing for the Financial Information Exchange or ‘‘FIX’’, TradeInfo and pricing for Other Port Fees. The pricing in Rule 7053 would be the same pricing that is currently assessed to NOM members today in Rule 7015 for FIX pricing, 3 TradeInfo 4 and applicable portion of Other Fees.5 The Exchange also proposes to make a technical amendment to Rule 7015 in section (b), titled Financial Information Exchange (FIX), to change the word ‘‘Options’’ to the word ‘‘Ports’’ to clarify information contained in that section does not relate to options trading but rather that term is used to define the fee categories in that section. The remaining sections of Rule 7015 which are not proposed in new Rule 7053 do not apply to NOM members. 3 For FIX pricing, the Exchange would assess: A Fix Trading Port fee of $500 per month per port; and a FIX Port for Services Other than Trading fee of $500 per month, per port. 4 Currently, NOM members not subscribing to the Nasdaq Workstation using TradeInfo are charged a fee of $95 per user per month. TradeInfo allows users to scan for their Nasdaq-listed orders submitted in Nasdaq. Users can then perform actions on their orders. Users can scan for all orders in a particular security or all orders of a particular type, regardless of their status (open, canceled, executed, etc.). For example, after scanning for open orders the user is then able to select an open order and is allowed to make corrections to the order or cancel the order. TradeInfo also allows the users to scan other orders, such as executed, cancelled, broken, rejected and suspended orders. 5 Currently, NOM members are assessed the $500 per month fee for each port pair. The remaining ‘‘Other Port Fees’’ are not applicable to NOM members today; those fees apply to members of The NASDAQ Stock Market LLC. To further clarify, only certain features are available on the NOM system. The Other Port Fees that exist in Rule 7015 that were not duplicated in new proposed Rule 7053 are not available on the NOM system but rather are available to members transacting equities only. PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 67793 Fees which are currently contained in Rule 7015 that were not duplicated in new proposed Rule 7053 are not available on the NOM system. Those fees are available to members transacting equities only.6 Today, the Exchange only assesses the applicable fees contained in Rule 7015 that apply to The NASDAQ Stock Market LLC members and/or NOM members, respectively. In other words, members transacting options only are assessed fees available on the NOM system. In creating this new Rule 7053, the Exchange is not changing which members are assessed certain fees, but rather the Exchange is proposing to separate the equities and options fees into two separate Rules. The Exchange believes that creating two separate Rules for Access Service pricing, one related to The NASDAQ Stock Market LLC and one related to NOM, would provide more clarity for members as well as ease of reference. 2. Statutory Basis NASDAQ believes that the proposed rule changes are consistent with the provisions of Section 6 of the Act,7 in general, and with Section 6(b)(4) of the Act,8 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which NASDAQ operates or controls. The Exchange believes the proposed amendments to Rule 7015 and the addition of proposed new Rule 7053 provides more clarity to The NASDAQ Stock Market LLC and NOM members as to the Access Service Fees which are applicable to each market. The Exchange believes that creating different Rules applicable to the equities and options markets for Access Service Fees provides ease of reference for members of each market. Also, the technical amendment should serve to avoid confusion. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. 6 The Commission notes that this is illustrated in note 5. See supra note 5 (clarifying that only certain features are available on the NOM system). 7 15 U.S.C. 78f. 8 15 U.S.C. 78f(b)(4). E:\FR\FM\03NON1.SGM 03NON1 67794 Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.9 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: jlentini on DSKJ8SOYB1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2010–136 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2010–136. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number SR– NASDAQ–2010–136 and should be submitted on or before November 24, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–27688 Filed 11–2–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63202; File No. SR–CBOE– 2010–080] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Trade Options on Leveraged Exchange-Traded Notes and To Broaden the Definition of ‘‘FuturesLinked Securities’’ October 28, 2010. I. Introduction On August 31, 2010, the Chicago Board Options Exchange (‘‘CBOE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’), and Rule 19b–4 thereunder,2 a proposed rule change to: (a) Permit the trading of options on leveraged (multiple or inverse) exchange-traded notes (‘‘ETNs’’), and (b) broaden the definition of ‘‘FuturesLinked Securities.’’ On September 9, 2010, the Exchange filed Amendment 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 9 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Mar<15>2010 19:21 Nov 02, 2010 Jkt 223001 PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 No. 1 to the proposed rule change. The proposed rule change, as modified by Amendment No. 1, was published for comment in the Federal Register on September 16, 2010.3 The Commission received no comment letters on the proposed rule change. This order approves the proposed rule change as modified by Amendment No. 1. II. Description of the Proposal The purpose of CBOE’s proposed rule change is to amend Interpretation and Policy .13 to Rule 5.3 to: (a) Permit the trading of options on leveraged (multiple or inverse) ETNs,4 and (b) broaden the definition of ‘‘FuturesLinked Securities.’’ Leveraged ETN Options Multiple leveraged ETNs seek to provide investment results that correspond to a specified multiple of the percentage performance of a particular Reference Asset on a given day. Inverse leveraged ETNs seek to provide investment results that correspond to the inverse (opposite) of the percentage performance of a particular Reference Asset by a specified multiple on a given day. Multiple leveraged ETNs and inverse leveraged ETNs differ from traditional ETNs in that they do not merely correspond to the performance of a given Reference Asset, but rather attempt to match a multiple or inverse of a Reference Asset’s performance. The Barclays Long B Leveraged S&P 500 TR ETN (‘‘BXUB’’), the Barclays Long C Leveraged S&P 500 TR ETN (‘‘BXUC’’) and the UBS AG 2x Monthly Leveraged Long Exchange Traded Access Securities (‘‘E–TRACS’’) linked to the Alerian MLP Infrastructure Index due July 9, 2040 (‘‘MLPL’’) currently trade on the NYSE Arca Stock Exchange and are examples of multiple leveraged ETNs. In addition, the Barclays ETN + Inverse S&P 500 VIX Short-Term Futures ETN (‘‘XXV’’) currently trades on the NYSE Arca Stock Exchange and is an example of an inverse leveraged ETN. Currently, Interpretation and Policy .13 to Rule 5.3 provides that securities deemed appropriate for options trading 3 See Securities Exchange Release No. 62880 (September 9, 2010), 75 FR 56628. 4 ETNs are also known as ‘‘Index-Linked Securities,’’ which are designed for investors who desire to participate in a specific market segment by providing exposure to one or more identifiable underlying securities, commodities, currencies, derivative instruments, or market indexes of the foregoing. Index-Linked Securities are nonconvertible debt of an issuer that have a term of at least one year but not greater than thirty years. Index-Linked Securities are traded as a single, exchange-listed security. As such, rules pertaining to the listing and trading of standard equity options apply to Index-Linked Securities. E:\FR\FM\03NON1.SGM 03NON1

Agencies

[Federal Register Volume 75, Number 212 (Wednesday, November 3, 2010)]
[Notices]
[Pages 67791-67794]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-27688]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63197; File No. SR-NASDAQ-2010-136]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ Stock Market, LLC 
Relating to Access Service Fees

October 27, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') ,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on October 20, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III, below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify Exchange Rule 7015, related to fees 
governing pricing for NASDAQ members using The NASDAQ Stock Market LLC 
and the NASDAQ Options Market (``NOM''), NASDAQ's facility for 
executing and routing standardized equity and index options, to apply 
only to The NASDAQ Stock Market LLC. The Exchange also proposes to 
create a new Rule 7053 which would include Access Services applicable 
only to NOM.
    The text of the proposed rule change is set forth below. Proposed 
new text is in italics and deleted text is in [brackets].
* * * * *

[[Page 67792]]

7015. Access Services

    The following charges are assessed by Nasdaq for connectivity to 
systems operated by NASDAQ, including the Nasdaq Market Center, the 
FINRA/NASDAQ Trade Reporting Facility, and FINRA's OTCBB Service. The 
following fees are not applicable to the NASDAQ Options Market LLC. For 
related options fees for Access Services refer to Rule 7053.
    (a) Nasdaq Information Exchange (QIX)

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Port pair (plus optional proprietary   $1,200 per month.
 quote information port).
ECN direct connection port pair......  $1,200 per month.
Unsolicited message port.............  $1,000 per month.
------------------------------------------------------------------------

    (b) Financial Information Exchange (FIX)

------------------------------------------------------------------------
            [Options] Ports                           Price
------------------------------------------------------------------------
FIX Trading Port.......................  $500/port/month.
FIX Port for Services Other than         $500/port/month.
 Trading.
------------------------------------------------------------------------

    (c) Computer to Computer Interface (CTCI)

Stations

------------------------------------------------------------------------
            Fee component                             Fee
------------------------------------------------------------------------
1st Station..........................  $200/Station/month.
Each Additional Station..............  $600/Station/month.
------------------------------------------------------------------------

    The bandwidth-based fees in the table below apply to CTCI 
subscribers that have not transitioned off of Nasdaq-supported 
circuits.

Bandwidth

----------------------------------------------------------------------------------------------------------------
                Fee component                                                 Fee
----------------------------------------------------------------------------------------------------------------
Single 56kb line with single hub and router   $900/month.
 (for remote disaster recovery sites only).
Option 1:
    Dual 56kb lines (one for redundancy) and  $1,000/month.
     single hub and router.
Option 2:
    Dual 56kb lines (one for redundancy),     $1,200/month.
     dual hubs (one for redundancy), and
     dual router (one for redundancy).
Option 3:
    Dual T1 lines (one for redundancy), dual  $2,500/month.
     hubs (one for redundancy), and dual
     routers (one for redundancy). Includes
     base bandwidth of 128kb.
Bandwidth Enhancement Fee (for T1
 subscribers only):
    Per 64kb increase above 128kb T1 base...  $200/month.
    Option 1, 2, or 3 with Message Queue      Fee for Option 1, 2, or 3 (including any Bandwidth Enhancement
     software enhancement.                     Fee) plus 20%.
    Installation Fee........................  $2,000 per site for dual hubs and routers.
                                              $1,000 per site for single hub and router.
    Relocation Fee (for the movement of TCF/  $1,700 per relocation.
     IP-capable lines within a single
     location).
----------------------------------------------------------------------------------------------------------------

    (d) New Nasdaq Workstation

----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Nasdaq Workstation Trader...................  $475 per user per month (including data entitlement package).
Nasdaq Workstation Post Trade...............  See Rule 7015(e).
----------------------------------------------------------------------------------------------------------------

    (e) Specialized Services Related to FINRA/NASDAQ Trade Reporting 
Facility

----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
CTCI fee....................................  $575/month.
WebLink ACT or Nasdaq Workstation Post Trade  $375.00/month (full functionality) or $200.00/month (up to an
                                               average of twenty transactions per day each month) (For the
                                               purposes of this service only, a transaction is defined as an
                                               original trade entry, either on trade date or as-of transactions
                                               per month.)
ACT Workstation.............................  $525/logon/month.
----------------------------------------------------------------------------------------------------------------

    (f) TradeInfo
    Members not subscribing to the Nasdaq Workstation using TradeInfo 
will be charged a fee of $95 per user per month.
    (g) Other Port Fees
    The following port fees shall apply in connection with the use of 
other trading telecommunication protocols:
     $500 per month for each port pair, other than Multicast 
ITCH[supreg] data feed pairs, for which the fee is $,000 per month.
     An additional $200 per month for each port used for 
entering orders or quotes over the Internet.
     An additional $600 per month for each port used for market 
data delivery over the Internet.
    (h) VTE Terminal Fees
     Each ID is subject to a minimum commission fee of $100 per 
month unless it executes a minimum of 100,000 shares.
     Each ID receiving market data is subject to pass-through 
fees for use of these services. Pricing for these services is 
determined by the exchanges and/or market center.
     Each ID that is given web access is subject to a $100 
monthly fee.
* * * * *

[[Page 67793]]

7053. NASDAQ Options Market--Access Services

    The following charges are assessed by Nasdaq for connectivity to 
the NASDAQ Options Market.
    (a) Financial Information Exchange (FIX)

------------------------------------------------------------------------
                 Ports                                Price
------------------------------------------------------------------------
FIX Trading Port.......................  $500/port/month.
FIX Port for Services Other than         $500/port/month.
 Trading.
------------------------------------------------------------------------

    (b) TradeInfo
     Members not subscribing to the Nasdaq Workstation using 
TradeInfo will be charged a fee of $95 per user per month.
    (c) Other Port Fees
    The following port fees shall apply in connection with the use of 
other trading telecommunication protocols:
     $500 per month for each port pair.
* * * * *
    The text of the proposed rule change is available on the Exchange's 
Web site at https://www.nasdaq.cchwallstreet.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NASDAQ is proposing to separate its equity and options fees which 
are assessed for connectivity to systems operated by NASDAQ.
    Currently Rule 7015, titled Access Services, contains fees assessed 
by Nasdaq for connectivity to systems operated by NASDAQ, including the 
Nasdaq Market Center, the FINRA/NASDAQ Trade Reporting Facility, and 
FINRA's OTCBB Service. Rule 7015 applies to both The NASDAQ Stock 
Market LLC members, conducting an equities business, and NOM members, 
conducting an options business. Access Services fees relate to ports 
used to: Enter orders into the NASDAQ trading systems; receive market 
data; enter quotes; and enter trade reports into the FINRA/NASDAQ Trade 
Reporting Facility.
    The Exchange is proposing to add the following language to Rule 
7015 so that it applies solely to The NASDAQ Stock Market LLC members: 
``The following fees are not applicable to the NASDAQ Options Market 
LLC. For related options fees for Access Services refer to Rule 7053.'' 
The Exchange is proposing to list those Access Service Fees which would 
apply to NOM members in a separate Rule.
    The Exchange proposes to create a new Rule 7053, titled ``NASDAQ 
Options Market--Access Services'' which would apply to NOM members 
conducting an options business. Specifically, this proposed new Rule 
would include pricing for the Financial Information Exchange or 
``FIX'', TradeInfo and pricing for Other Port Fees. The pricing in Rule 
7053 would be the same pricing that is currently assessed to NOM 
members today in Rule 7015 for FIX pricing, \3\ TradeInfo \4\ and 
applicable portion of Other Fees.\5\
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    \3\ For FIX pricing, the Exchange would assess: A Fix Trading 
Port fee of $500 per month per port; and a FIX Port for Services 
Other than Trading fee of $500 per month, per port.
    \4\ Currently, NOM members not subscribing to the Nasdaq 
Workstation using TradeInfo are charged a fee of $95 per user per 
month. TradeInfo allows users to scan for their Nasdaq-listed orders 
submitted in Nasdaq. Users can then perform actions on their orders. 
Users can scan for all orders in a particular security or all orders 
of a particular type, regardless of their status (open, canceled, 
executed, etc.). For example, after scanning for open orders the 
user is then able to select an open order and is allowed to make 
corrections to the order or cancel the order. TradeInfo also allows 
the users to scan other orders, such as executed, cancelled, broken, 
rejected and suspended orders.
    \5\ Currently, NOM members are assessed the $500 per month fee 
for each port pair. The remaining ``Other Port Fees'' are not 
applicable to NOM members today; those fees apply to members of The 
NASDAQ Stock Market LLC. To further clarify, only certain features 
are available on the NOM system. The Other Port Fees that exist in 
Rule 7015 that were not duplicated in new proposed Rule 7053 are not 
available on the NOM system but rather are available to members 
transacting equities only.
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    The Exchange also proposes to make a technical amendment to Rule 
7015 in section (b), titled Financial Information Exchange (FIX), to 
change the word ``Options'' to the word ``Ports'' to clarify 
information contained in that section does not relate to options 
trading but rather that term is used to define the fee categories in 
that section.
    The remaining sections of Rule 7015 which are not proposed in new 
Rule 7053 do not apply to NOM members. Fees which are currently 
contained in Rule 7015 that were not duplicated in new proposed Rule 
7053 are not available on the NOM system. Those fees are available to 
members transacting equities only.\6\ Today, the Exchange only assesses 
the applicable fees contained in Rule 7015 that apply to The NASDAQ 
Stock Market LLC members and/or NOM members, respectively. In other 
words, members transacting options only are assessed fees available on 
the NOM system. In creating this new Rule 7053, the Exchange is not 
changing which members are assessed certain fees, but rather the 
Exchange is proposing to separate the equities and options fees into 
two separate Rules.
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    \6\ The Commission notes that this is illustrated in note 5. See 
supra note 5 (clarifying that only certain features are available on 
the NOM system).
---------------------------------------------------------------------------

    The Exchange believes that creating two separate Rules for Access 
Service pricing, one related to The NASDAQ Stock Market LLC and one 
related to NOM, would provide more clarity for members as well as ease 
of reference.
2. Statutory Basis
    NASDAQ believes that the proposed rule changes are consistent with 
the provisions of Section 6 of the Act,\7\ in general, and with Section 
6(b)(4) of the Act,\8\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
members and issuers and other persons using any facility or system 
which NASDAQ operates or controls.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes the proposed amendments to Rule 7015 and the 
addition of proposed new Rule 7053 provides more clarity to The NASDAQ 
Stock Market LLC and NOM members as to the Access Service Fees which 
are applicable to each market. The Exchange believes that creating 
different Rules applicable to the equities and options markets for 
Access Service Fees provides ease of reference for members of each 
market. Also, the technical amendment should serve to avoid confusion.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act.

[[Page 67794]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\9\ At any time within 60 days of the filing 
of the proposed rule change, the Commission summarily may temporarily 
suspend such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act. If the Commission takes such action, the Commission shall 
institute proceedings to determine whether the proposed rule should be 
approved or disapproved.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2010-136 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2010-136. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for website 
viewing and printing in the Commission's Public Reference Room, 100 F 
Street, NE., Washington, DC 20549, on official business days between 
the hours of 10 a.m. and 3 p.m. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
Exchange. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
publicly available. All submissions should refer to File Number SR-
NASDAQ-2010-136 and should be submitted on or before November 24, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-27688 Filed 11-2-10; 8:45 am]
BILLING CODE 8011-01-P
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